Innovation focuses on improving existing products or processes rather than inventing entirely new things. Joseph Schumpeter identified five patterns of innovation: introducing new goods or services, developing new production methods, opening new markets, finding new sources of supply, and reorganizing an industry. While inventions can drive innovation, a country or company does not need to invent something completely new to succeed - focusing on innovating existing technologies through combinations or improvements can also power economic growth, as Japan demonstrated by innovating on cars and TVs without originally inventing them.

1. Innovation vs. Invention
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2. Difference Between Innovation & Invention
In today’s global economy, there is a constant drumbeat to
come up with something “new.” But you don’t need to
invent something entirely new to be successful. Invention is
wonderful, but you can be very successful if you focus on
innovating on something that already exists rather than
inventing something entirely new

3. What is important here is to separate invention
and innovation.
Innovation is really what drives economic growth. This is a
theory of Joseph Schumpeter, who was a professor at Harvard
University. Schumpeter was one of the 20th century’s major
economists. He said that innovation was the product of new
combinations, and he proposed five combination patterns:

4. Five Combination patterns
1) The production of a new good
2) The introduction of a new method of production
3) The development of a new market
4) The acquisition of a new source of supply of raw materials
5) the emergence of a new organization of any industry.

5. In the end, innovation does not need to mean inventions like
induced pluripotent stem cells or anything else. The
emergence of new discoveries is absolutely a good thing, but
even without inventions, a country or company can still come
out ahead.

6. Japan didn’t invent the car or the TV, but it certainly
innovated on them and built world-leading companies
and economies.

7. Thank you